EBIT before non-recurring effects improved
The developments presented above generated profit from operating activities (EBIT) of €3,202 million. This figure contains non-recurring income of €59 million and net non-recurring effects of €–25 million at Postbank as well as a €594 million impairment loss on the assets of the EXPRESS business in the Americas region. The prior-year earnings figure contained non-recurring income of €375 million. Adjusted for these factors, profit improved by 7.6%.
Net finance costs closed at €1,010 million, a slight improvement on the previous year (€1,030 million). In 2006, interest and measurement effects from the exchangeable bond on Postbank shares was responsible for the higher figure, whilst in the period under review it was higher interest rates that drove up finance costs.
Profit before income taxes fell by €650 million to €2,192 million. Income taxes dropped to €307 million (previous year: €560 million). This reflects the lowering of the tax rate in the wake of the corporate tax reform in Germany. As a result, the Group tax rate dropped from 19.7% to 14.0%.
Consolidated net profit for the period decreased by €397 million to €1,885 million (previous year: €2,282 million). An amount of €1,389 million is attributable to shareholders of Deutsche Post AG and €496 million to minority shareholders. Both the basic and diluted earnings per share fell from €1.60 to €1.15.